Selling Inherited Property in the UK (2026): Probate, CGT & Step-by-Step Process

In almost all cases, yes. The executor cannot legally transfer the title of a solely owned property to buyers without first obtaining a Grant of Probate (or, where there is no will, Letters of Administration). The Land Registry requires an official copy of the grant before it will register a change of ownership. There is one practical exception: where the property was held as joint tenants, the deceased's share passes automatically to the surviving owner by the right of survivorship, and no probate is needed for that property — a death certificate and an 'assent' or Land Registry form DJP suffices. For property held as tenants in common, the deceased's share must pass through the estate and probate is required.

When you inherit property and later sell it, CGT is charged on the gain between the probate value (the open market value at the date of death, used for IHT) and your sale proceeds, less allowable costs such as estate agent fees, solicitor fees, and improvement costs. The probate value becomes your CGT base cost — this is a key benefit of inheritance: rather than inheriting the deceased's original purchase price, you 'step up' to the value at death. In 2026/27 the CGT annual exemption for individuals is £3,000. Residential property CGT rates are 18% (basic-rate taxpayer) and 24% (higher or additional-rate taxpayer), applying to gains after the exemption. If several beneficiaries inherit and each sells their share, each can use their own annual exemption.

An executor can market the property and accept an offer before probate is granted — this is common and causes no legal problem. What the executor cannot do is exchange contracts before the grant is issued, because without the grant they have no legal authority to bind the estate to a sale. In practice this means the conveyancing process runs in parallel with the probate application, with exchange taking place once the grant arrives. Allowing buyers to know that exchange is conditional on grant can deter some buyers in a competitive market, but it is entirely standard for estate sales. Some solicitors will exchange with a special condition that completion is deferred until grant, which gives the buyer more certainty.

From 27 October 2021, any gain arising on the disposal of UK residential property must be reported to HMRC and any CGT paid within 60 days of completion. This applies even if a self-assessment tax return is also submitted. The report is made using HMRC's online 'Report and pay CGT on UK property' service (Capital Gains Tax on UK property account). Failure to report within 60 days incurs automatic late-filing penalties (£100 for up to six months late, £300 or 5% of the tax for six to twelve months late) plus interest on unpaid CGT. The 60-day window starts from the completion date, not exchange. If the gain is fully covered by the annual CGT exemption, no tax is payable — but a report may still be required if you complete a self-assessment return.

No. Stamp Duty Land Tax (SDLT) is paid by the buyer of a property, not by the seller. When you inherit property, you receive it under a will or the intestacy rules — no SDLT is payable on that transfer. When you later sell the inherited property, the buyer of that sale pays SDLT on their purchase in the usual way. Be aware, however, that if you already own a residential property and you inherit another, the inherited property counts for SDLT higher-rate surcharge (3%) purposes — so if you subsequently buy another property, that additional SDLT surcharge will apply. You may be able to reclaim the surcharge if you sell your main residence within three years.

If property is left to beneficiaries as tenants in common in equal shares, all co-owners must agree to sell — no one can be forced to sell without a court order. If co-owners deadlock, any co-owner can apply to the court under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) for an order for sale. Courts grant these applications in most cases where the purpose of the trust (often to provide a home) has ended and a sale is in the best interests of all beneficiaries. The court can also order one co-owner to buy out another. Legal costs in TOLATA proceedings can be substantial, so mediation is usually attempted first. Where one beneficiary lives in the property, the court may delay sale to allow time to rehouse them.

If you inherit a property and then live in it as your main residence (principal private residence), Private Residence Relief (PRR) exempts the gain that accrues during the period you occupy it as your home. Only the gain during periods of non-occupation (e.g. from the date of death to when you moved in) is taxable. If you move in immediately after the estate is wound up and live in the property as your main home throughout your ownership, the entire gain from probate value to sale price could be covered by PRR. The last nine months of ownership are always treated as a qualifying period of occupation under HMRC rules, even if you have already left. You must formally elect which property is your PPR if you own more than one.

The total timeline from death to completion is typically six to twelve months for a straightforward estate. The main steps are: death to probate application (4–8 weeks, gathering valuations and documents); probate application to grant (8–20 weeks, depending on HMCTS workload — currently running at 12–16 weeks on average); marketing and sale (4–16 weeks depending on market conditions); exchange to completion (2–4 weeks). Running the conveyancing in parallel with the probate application shortens the overall timeline significantly. An estate agent specialising in probate sales can be instructed immediately; a probate conveyancer will also run searches ahead of the grant so that exchange can follow quickly once the grant arrives.